Sam Updike

What is a Small Business Set-Aside?

The federal government has initiatives to increase its collaboration with small businesses. One of its strongest tools to achieve this is their Small Business Set-Asides. Under the Federal Acquisition Regulation (FAR Part 19) and Small Business Administration (SBA) rules, contracting officers must evaluate whether there are enough responsible small businesses available before opening a contract to full competition. This applies to basic small business set-asides, where the anticipated value of the contract opportunity supports competition among any small businesses that meet the SBA size standard. The contractual threshold for small business set-asides is $250,000, meaning contracts under that amount are generally reserved for small businesses.

More set-asides are present for specific socio-economic certifications and business designations. First, there is the 8(a) Business Development program and the Small Disadvantaged Business (SDB) designation. The federal goal for SDB is for 5% of prime award dollars, 8(a) counts toward this goal. The next set of certifications with specific set-asides are Women Owned Small Business and Economically Disadvantaged Women Owned Small Business. Both collectively count toward a federal goal of 5% of prime award dollars. Next, the Service-Disabled Veteran Owned Small Business certification’s federal goal is 3% of prime contracting award dollars. This does not apply to the Veteran Owned Small Business certification. The final set-aside for a specific certification applies to the HUBZone program, which is meant to promote economically disadvantaged regions. This federal goal is for 3% of federal prime award dollars. The last goal is for all small businesses, and amounts to 23% of all prime award dollars. All these goals are statutory and set-asides are used to meet them as best as possible. Some programs allow for sole source awards, designated exclusively for specific certifications.

Having an active certification will greatly increase your access to these set-asides, but eligibility alone will not earn you contract awards. It is vital that you stay up to date on the federal market and seek every opportunity. APEX Accelerator can help you find contract opportunities whether through market research, capability statement development, or through tools like bid-match. Additionally, each of these certifications has a unique application process, completed through the Small Business Administration. APEX procurement counselors are glad to assist you through the process, so make sure to reach out if you are interested!

--Sam Updike, Procurement Counselor for Hancock, Penobscot, Piscataquis and Waldo counties

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Marissa Henkel

Critical Technology Areas: What Maine Small Businesses Should Know

In November 2025, the Under Secretary of War for Research & Engineering identified six Critical Technology Areas (CTAs) that are top priorities for strengthening national defense. These focus areas were established to encourage private sector innovation and help new technologies move faster from idea to real-world use, delivering tangible results at the “speed of relevance.”

These CTAs reflect the Department of War’s strategic priorities to accelerate the application of innovative technologies into real-world capabilities that meet defense requirements. Federal research funding, prototyping efforts, and contracting opportunities are actively growing in these areas: Applied Artificial Intelligence, Biomanufacturing, Contested Logistics Technologies, Quantum & Battlefield Information Dominance, Scaled Hypersonics, and Scaled Directed Energy.

For Maine’s small businesses, this list offers valuable insight into where defense-related opportunities are emerging. For example:

• A software company that works in data analytics, automation, or machine learning could support Applied Artificial Intelligence efforts related to logistics, maintenance, or autonomous systems.
• A biotech or advanced materials company may find opportunities connected to Biomanufacturing, especially in strengthening domestic supply chains.
• Manufacturers producing precision components, composites, or specialty materials could potentially supply larger contractors working in Hypersonics or Directed Energy.
• Companies with experience in transportation, marine operations, or operating in harsh environments may align with Contested Logistics needs.

Understanding prioritized technology investments allows small businesses to update capability statements to highlight relevant experience, monitor and pursue federally funded R&D opportunities, explore subcontracting relationships with prime contractors actively involved in these efforts, and prepare for upcoming solicitations tied to these focus areas.

In addition to traditional contracting, small businesses can explore Innovation Pathways from the Office of the Under Secretary of War for Research & Engineering to connect with defense labs, innovation hubs, and organizations that use flexible contracting tools such as Other Transaction Authority (OTA).

These innovative organizations give small businesses opportunities to:

• Submit solutions to specific technology challenges
• Participate in prototype projects
• Build relationships with defense program offices
• Transition successful research into acquisition opportunities

By understanding and aligning with the DoW’s Critical Technology Areas (please see full graphic next page), Maine small businesses can better position themselves for future research partnerships, subcontracting opportunities, and federal funding programs, strengthening both the national defense industrial base and Maine’s innovation economy.

If your business is working in one of these areas and would like to learn more about entering the defense supply chain, contact your Maine APEX Accelerator counselor.

--Marissa Henkel, Procurement Counselor for Kennebec, Knox, Lincoln, Sagadahoc and Somerset counties